5 days ago
India’s Public Market Fundraising May Hit Record ₹6.5 Trillion
Indian companies are expected to raise a lot of money from public markets in FY27.
They can do this by selling shares through IPOs, QIPs, and block deals.
Motilal Oswal estimates the total could reach ₹6-6.5 trillion.
IPO fundraising alone could rise to ₹2.75-3 trillion.
More investors are participating across companies of different sizes.
Some companies are also choosing lower IPO valuations and smaller offerings to attract buyers.
However, the strong pace may slow after many companies in the current pipeline complete their offerings.
The forecast comes from Motilal Oswal investment-banking head Amit Ramchandani.
Motilal Oswal projects India’s total public-market fundraising at ₹6-6.5 trillion in FY27.
IPO fundraising could reach ₹2.75-3 trillion, up from about ₹1.7 trillion in FY26.
QIP fundraising is expected to roughly double to ₹1.25-1.5 trillion in FY27.
Block and bulk deals could contribute about ₹1.5 trillion as institutional demand broadens.
The IPO pace may slow after the current pipeline of approved and pending offerings is cleared.
- Who
- Indian companies, institutional investors, and investment banks, with projections provided by Amit Ramchandani of Motilal Oswal.
- What
- Public-market fundraising through IPOs, QIPs, and block or bulk deals is expected to reach a record ₹6-6.5 trillion in FY27.
- Where
- India’s public markets.
- When
- During FY27; the outlook was discussed in an interview on Wednesday, with stronger activity expected in the second half.
- Why
- Broad investor participation, a large IPO pipeline, and increased institutional demand for share allocations are supporting the fundraising outlook.
Bullish outlook
Potential slowdown
Fundraising growth
Bullish outlook
Amit Ramchandani expects IPOs, QIPs, and block deals to lift total public-market fundraising to ₹6-6.5 trillion in FY27.
Potential slowdown
Ramchandani expects activity to moderate after the current queue of offerings is exhausted.
IPO activity
Bullish outlook
At least 20 IPOs are expected in September, with a stronger second half and FY27 IPO value comfortably exceeding FY26.
Potential slowdown
Once the pipeline of relatively large, mature companies is cleared, a decline in listings could mainly affect smaller businesses.
Pricing strategy
Bullish outlook
More pragmatic valuations and smaller offerings may help companies establish trading benchmarks and later conduct larger block deals.
Potential slowdown
Companies facing valuation disagreements may turn to private credit or structured debt and postpone their IPOs.
Key facts
- Projected total fundraising
- ₹6-6.5 trillion in FY27
- Projected IPO fundraising
- ₹2.75-3 trillion, compared with about ₹1.7 trillion in FY26
- Projected QIP fundraising
- ₹1.25-1.5 trillion, compared with ₹60,000-62,000 crore last year
- Projected block and bulk deals
- About ₹1.5 trillion in FY27
- IPO volume forecast
- A 20-25% increase from the 112 IPOs recorded last fiscal
- Current pipeline
- More than 240 draft filings, including over 145 with regulatory approval and about 70 awaiting approval
- Expected additional offerings
- Another 70-80 public issues after roughly 57-58 already completed in FY27
Quotes
Amit Ramchandani
Head of investment banking at Motilal Oswal
“IPO pricing has turned more pragmatic, leading to smaller OFS sizes. Where public market valuation expectations diverge, issuers are tapping private credit and structured debt to meet immediate funding needs, choosing to revisit their IPO timelines down the road.”
livemint.com
“Both put together we should be anywhere between ₹4.5 trillion to ₹5 trillion, which should be the highest that the industry has ever seen.”
livemint.com
Sources
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